House flipping is a common method of real estate investing across the U.S. The investor purchases and rehabs a house, then sells it at a profit. In 2018, Tampa Bay has again been ranked one of the top cities in the U.S. for flipping houses.
House Flipping in the U.S.
Currently throughout the U.S., the housing market remains healthy. According to Zillow, “the median home value in the United States is $216,700. United States home values have gone up 6.5% over the past year and Zillow predicts they will rise 6.4% within the next year.”
House flippers buying and selling homes account for around 5.7% of all home sales in the U.S., which is a high point after the 2008 market crash. However, as flipping becomes more popular for investors, homes to flip are more difficult to find and the market is narrowing in many areas of the country, according to the Tampa Bay Times.
Flipping Homes in Tampa Bay
The housing market in Tampa Bay is a buyer’s market, according to Zillow. “The median home value in Tampa is $211,600. Tampa home values have gone up 9.8% over the past year and Zillow predicts they will rise 6.5% within the next year. The median list price per square foot in Tampa is $187, which is higher than the Tampa-St. Petersburg-Clearwater Metro average of $141. The median price of homes currently listed in Tampa is $309,150 while the median price of homes that sold is $210,000. The median rent price in Tampa is $1,535, which is higher than the Tampa-St. Petersburg-Clearwater Metro median of $1,500.”
As the U.S. housing market tightens, Tampa Bay becomes increasingly attractive to house flippers. This is due to the high demand for homes, and the steadily increasing market value of homes throughout Metro Tampa Bay.
Tampa is growing and developing rapidly, as more people move to the city because of business and employment opportunities, in addition to the quality of life. Therefore, Tampa Bay communities were named as the best cities to live in 2018.
Out of the 122 zip codes in Tampa Bay, 74 of them gave gross returns of more than 50% for home flippers in 2017, with the top area being Dade City at 126.2% average returns for flippers, according to the Tampa Bay Times. The larger returns are said to be related to the low purchase price, compared to the average home in Tampa.
Tampa Ranked Top City for Flipping Houses
Tampa ranks as the top Florida city, and among top 10 in the U.S., for flipping houses, according to the Tampa Bay Business Journal. Although the housing market is tightening, resulting in fewer homes available for flipping, Tampa remains an attractive place for house flipping, due in part to low remodeling and renovation costs.
For experienced flippers with the expertise to find and purchase properties at the right price, Tampa is set to be an outstanding market for flipping into the foreseeable future. As the city continues to grow, expand, and reinvent itself, more people are flocking into the area and want to buy a home. As a result, the market for flipped homes is large.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay.
Unlike other wholesaling groups, we provide clients with a turnkey process at no extra charge. We find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years.